Chapter 13: Measuring the Economy's Performance
Businesspeople, economists, and politicians often need to
know how the economy is performing. Chapter 13 explains key
statistics, indicators, indexes, and models used to measure
the economy's performance. Terms defined include gross domestic
product, net national product, national income, personal income,
and disposable income.
Coffee for a Nickel?
The rise in prices over time is called inflation. The chapter
examines the effect of inflation on purchasing power, and
it discusses how consumer and producer price indexes and real
GDP are used to measure changes in average prices. Also included
is an analysis of aggregate demand and supply and equilibrium
price level. The chapter finishes with a discussion of business
fluctuations, from peak to trough to recovery, and the major
causes and economic indicators of these cycles.